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Redwire Corporation Class Action Lawsuit - RDW; GNPK

Company Name
Redwire Corporation
Stock Symbol
RDW; GNPK
Class Period
August 11, 2021 to November 14, 2021
Motion Deadline
February 15, 2022
Court
Middle District of Florida
25 days left to seek lead plaintiff status

Case Summary

The Redwire class action lawsuit seeks to represent purchasers of Redwire Corporation f/k/a/ Genesis Park Acquisition Corp. (NYSE: RDW; GNPK) securities between August 11, 2021 and November 14, 2021, inclusive (the “Class Period”) and charges Redwire and certain of its top executives with violations of the Securities Exchange Act of 1934.  The Redwire class action lawsuit was commenced on December 17, 2021 in the Middle District of Florida and is captioned Lemen v. Redwire Corporation f/k/a/ Genesis Park Acquisition Corp., No. 21-cv-01254.

If you wish to serve as lead plaintiff of the Redwire class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Redwire class action lawsuit must be filed with the court no later than February 15, 2022.

CASE ALLEGATIONS: Genesis Park Acquisition Corp. (“GPAC”) was a special purpose acquisition company – also known as a SPAC or blank-check company – formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.  On September 2, 2021, GPAC combined with certain entities and was renamed Redwire.  Redwire purports to offer mission critical space solutions and high reliability components for the next generation space economy, with valuable IP for solar power generation and in-space 3D printing and manufacturing.  Prior to the merger, GPAC’s common shares traded on the NYSE under the symbol GNPK.

The Redwire class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) there were accounting issues at one of Redwire’s subunits; (ii) as a result, there were additional material weaknesses in Redwire’s internal control over financial reporting; and (iii) consequently, defendants’ positive statements about Redwire’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On November 10, 2021, Redwire announced that it would postpone the release of its third quarter earnings results.  Redwire “was notified by an employee of potential accounting issues with a business subunit,” and Redwire’s Audit Committee was investigating the allegations.  On this news, Redwire’s stock price fell by approximately 16%.

Then, on November 15, 2021, Redwire stated that it could not timely file its quarterly report for the period ended September 30, 2021.  Redwire further disclosed that due to the pending investigation into the accounting issues at a business subunit, Redwire had “not been able to finalize its financial statements or its assessment of the effectiveness of its disclosure controls and procedures and any impact” on the report.  On this news, Redwire’s stock price fell an additional 8.3%, further damaging investors.

Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance.  Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors.  The rise in blank check financing poses unique risks to investors.  Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Redwire securities during the Class Period to seek appointment as lead plaintiff in the Redwire class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Redwire class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Redwire class action lawsuit.  An investor’s ability to share in any potential future recovery of the Redwire class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs’ firm.

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